The company will also rebrand its broader business as Mode Media, while the name Glam will be retained as its standalone Internet publication focused on women's lifestyles.

Video, particularly original content, has become the must-have piece of the digital puzzle. Advertisers have proven willing to pay much more for online video space compared to typical display inventory like banner ads.

“The next generation digital video company needs to be a combination of a TV network and a pure digital video player like Netflix and Hulu—offering exclusive original programming and direct-to-consumer distribution. With our reach of over 250 million monthly unique visitors, Mode Media is able to syndicate content embedded across our distribution ecosystem of over 6,000 content businesses, creating a comprehensive new video service," Samir Arora, founder & CEO of Mode Media, said in a press release.

Online video advertising spending has grown quickly and that trend is expected to continue. From 2011 to 2013, U.S. digital video ad spending doubled from $2 billion to $4.1 billion, according to eMarketer. That number is expected to double again by 2016.

That money will need to continue to flow to keep up with the increasing number of players in the industry. The recent NewFronts events from companies including Yahoo, AOL and even the New York Times have shown that digitally native and traditional media companies are investing heavily in online video.

Mode is still a private company despite persistent rumors that it has been planning an initial public offering. The media company was started in 2003 and has raised more than $200 million in funding.

Mode claims to be the leader in global reach for women on the Internet. The company's combined properties regularly rank in the top 10 of comScore's Media Matrix.

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